A general view of the Borouge petrochemical plant at ADNOC’s Ruwais Industrial Complex in Ruwais, United Arab Emirates May 14, 2018. REUTERS/Christopher Pike/File Photo
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DUBAI, May 31 (Reuters) – Abu Dhabi-based petrochemicals company Borouge raised more than $2 billion on Tuesday after demand for its IPO topped $83.4 billion.
The shares are scheduled to trade Friday on the Abu Dhabi Securities Exchange (ADX) under the symbol BOROUGE, the largest-ever listing on the exchange, which has seen a string of IPOs over the past two years.
Gulf issuers have raised more than $10 billion so far this year, data from Refinitiv shows.
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Borouge set the offer price for its IPO last week, saying it could raise $2 billion in the deal and give the company an implied equity value of $20 billion.
The company is owned by the Abu Dhabi National Oil Company (ADNOC) and the Austrian Borealis. After the IPO, ADNOC will continue to hold a majority stake of 54% and Borealis 36%.
Of Borouge’s offered 10%, 88% was for institutional investors, which placed approximately $65.5 billion in orders.
These included approximately US$570 million in cornerstone investments from Abu Dhabi State holding company ADQ, Abu Dhabi Pension Fund, Emirates Investment Authority, Indian family Adani and companies managed by International Holding Company (IHC.AD), controlled by Multiply Group and Alpha Dhabi ( ALPHADHABI.AD).
Citi (CN), First Abu Dhabi Bank (FAB.AD), HSBC (HSBA.L) and Morgan Stanley (MS.N) were joint global coordinators, while Abu Dhabi Commercial Bank (ADCB.AD), Arqaam Capital, EFG- They were joined as joint bookrunners by Hermes (HRHO.CA), Goldman Sachs (GS.N) and International Securities LLC. The receiving banks were Abu Dhabi Islamic Bank (ADIB.AD) and Al Maryah Community Bank.
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Reporting by Yousef Saba; Edited by Kirsten Donovan
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